I noticed there were many articles floating around regarding the portion of H.R. Bill #2847 - known as "FATCA"
Some facts about FATCA which goes into effect July 1,2014
Many sites have dire warning concerning the collapse of the American Dollar due to this Bill/FATCA. So I thought I would spend some time researching how this Bill is going to effect the currencies in Foreign Countries. The most negative warning is from Stansberry Research- I must admin I do not know much about Stansberry Research however I did use their article- Please verify for yourself.
I would say most Countries are not too happy about this Bill. In fact I venture to say many of these countries would drop the US dollar- if they could! Hhhmm? Can they?
Obama’s new July 1st 2014 law will shock most Americans
Submitted by Barracuda_Trader on Thu, 02/20/2014 - 21:27
Obama’s new July 1st 2014 law will shock most Americans
We’ve been critical of several Obama Administration policies over the past few years…
But a new law set to go into effect on July 1st, 2014 (less than six months from now), might be the Administration’s worst decision yet.
On this date, Title V of House of Representative Bill #2847, known as “FATCA,” goes into effect.
We believe this could precipitate a huge collapse in the U.S. dollar… and a rapid decrease in our standard of living.
Of course, we’re not the only ones who believe this new U.S. law is going to be a disaster for our country and American citizens.
Andrew Quinlan of the Center for Freedom and Prosperity says: “FATCA is pound-for-pound the single worst tax law on the books.”
Even the normally liberal Atlantic Monthly magazine said: “FATCA seems to be turning into a nightmare and disaster.”
What does this law do… and why is it so bad for America?
The founder of our Research Firm has put together a detailed explanation of what is happening in America right now, and why this new law is something EVERY American should pay close attention to.
Get the facts for yourself, free on our website, here…
Publisher, Stansberry Research
The following articles are from Foreign sources - of course I have no way to confirm the reputations of these papers but they appear to be legitimate ... please verify for yourself..
From Canadian Business
Finding the good in the U.S.’s foreign account take down: Erica Alini
U.S. efforts gave impetus to G-20 tax information sharing pledge Canada is going to sign a deal on FATCA “before too long,” Finance Minister Jim Flaherty told reporters earlier this week. In case you don’t know, FATCA stands for Foreign Account Tax Compliance Act, which requires financial institutions to disclose to the IRS foreign accounts held by U.S. citizens and permanent residents worth more than U.S. $50,000.
From the Cayman Financial Review
FATCA, or the Foreign Account Tax Compliance Act, is a U.S. law that requires banks and financial institutions located abroad to report on deposits and financial assets of U.S. taxpayers, thus extending the rule of US fiscal legislation and making banks and countries worldwide U.S. tax collectors.
The U.S. can impose this law because the dollar’s status as an international currency of exchange requires that banks and financial entities have deposits and exchange transactions with the banks located in the U.S. By not submitting to FATCA, transactions conducted in the U.S. are subject to a withholding tax of 30 percent; this compels them either to comply or withdraw from international business.
Why has neither the OECD nor the G20 taken a stand on FATCA, whose existence constitutes a clear violation of international law and which will cause worldwide increase in the cost of banking services? Both the OECD and the G20 require that member countries comply with international standards, one of which is the factor of residency for the collection of taxes, including universal income. This means that under the universal tax system, a citizen of Europe, Mexico, China, India, Japan, etc., pays taxes to their country of residence. For example, a Mexican who lives in France does not have to pay taxes in Mexico but in France, his country of residence. (Panama does not use universal taxation system; rather, it applies only a territorial system.) In contrast, the U.S. violates this international standard and taxes its citizens wherever they reside, and implementation of FATCA will require that the rest of the world become tax collectors for the U.S.
It is difficult to justify the fact that both the OECD and the G20 have ignored the non-compliance of the U.S. with the basic international standards. To add to the absurdity, the Global Forum created by the OECD supposedly to verify compliance “certified” that its principal member is actually in compliance. This they have done even though the U.S. is the world’s greatest tax haven, giving no information to third countries on the U.S. investments of their citizens, who then cannot be taxed in their countries of residence. In addition, the U.S. has more than seven thousand financial intermediaries in what are called “Qualified Intermediary Agreements” (QIA) in which the IRS guarantees them total secrecy for the identity of their clients. Those identities are unknown even to the IRS agency, thus, of course, the U.S. cannot provide foreign countries with information they do not have.
But that is not all. How can it be explained that the Global Forum also overlooked the fact that the U.S. does not comply with the international standard requiring disclosure of the identities of the final beneficiaries of juridical persons. It would seem that those who examined the U.S. case ignore the U.S. Government Accountability Office (U.S. GAO) reports on all types of financial offenses, money laundering, tax evasion and other criminal offenses attributed to U.S. corporations. The study, “Company Formations Minimal Ownership Information” is readily available and has served as basis for legal projects proposed by Senator Levin in four legislatures. Among other points, this explosive study pointed out the following facts regarding U.S. corporations:
- Nearly 2,000,000 corporations and limited liability companies are being formed under the laws of the states each year.
- Very few states obtain meaningful information about the beneficial owners of the corporations and limited liability companies formed under their laws.
- (3) A person forming a corporation or limited liability company within the United States typically provides less information to the state of incorporation than is needed to obtain a bank account or driver’s license and typically does not name a single beneficial owner.
- Criminals have exploited the weaknesses in state formation procedures to conceal their identities when forming corporations or limited liability companies in the United States, and have then used the newly created entities to commit crimes affecting interstate and international commerce such as terrorism, drug trafficking, money laundering, tax evasion, securities fraud, financial fraud and acts of foreign corruption.
- Law enforcement efforts to investigate corporations and limited liability companies suspected of committing crimes have been impeded by the lack of available beneficial ownership information, as documented in reports and testimony by officials from the Department of Justice, the Department of Homeland Security, the Financial Crimes Enforcement Network of the Department of the Treasury, the Internal Revenue Service, and the Government Accountability Office, and others.
- In July 2006, a leading international anti-money laundering organization, the Financial Action Task Force on Money Laundering (FATF), of which the United States is a member, issued a report that criticizes the United States for failing to comply with a FATF standard on the need to collect beneficial ownership information and urged the United States to correct this deficiency by July 2008
The G20, composed of the most important economies in the world, and the “club” of rich countries that make up the OECD, should demand that their principal member comply with the international standards, eliminating FATCA and QIA and approve with no further delay Senator Levin’s projected law “Know Your Client.”
By universal right and under the principle of fair competition in a global economy, all nations of the world, big and small, have the freedom to choose their own tax systems. Under this light, we condemn the hypocrisy of the U.S. as the ultimate power behind the OECD, the double standards and the shameful scheme to eliminate legitimate competition from smaller financial centers who are not members of this club. In an unprecedented interconnected world with ample access to instant information these facts can no longer be concealed and are becoming a stain on the record of the OECD and the history of the U.S.
It is time the world makes the U.S. realize that there are international norms and standards which demand respect and that it should return to being the example of freedom, justice and democracy its forefathers bequeathed to the world. The OECD must not continue to mock the international community; they should cast off the role of “Cartel” strategizing to promote the businesses of their particular partners, and stop intimidating and bullying those countries outside of their fraternal “club”.
From The Parliament of Australia
The US Foreign Accounts Tax Compliance Act (FATCA) and interaction with G20 initiatives: a quick guide
10 January 2014
PDF version [285KB]
Hannah Gobbett and Bernard Pulle
The Foreign Account Tax Compliance Act (FATCA) is an American law developed to reduce offshore tax evasion and regain federal tax revenues from American account holders at foreign (non-American) financial institutions internationally. It therefore has implications for Australia and its financial institutions.
The impetus for the Act was a 2009 court case in which Swiss Bank UBS was found to have assisted American nationals to evade paying American taxes. As a result, UBS agreed to pay the United States (US) government US$780 million in fines, restitution and provide the names of suspected tax cheats.
According to the United States Department of Justice, the use of offshore bank accounts to avoid paying American taxes costs the US Treasury, in total, at least US$100 billion annually.
The wide-reaching FATCA was passed in the 111th Congress as part of the 2010 Hiring Incentives to Restore Employment Act (Hire Act), becoming law in March 2010.
– individuals to report their financial accounts held outside of the United States, and
– foreign (that is, non-US) financial institutions to report to the Internal Revenue Service (IRS) about their American clients.
To enforce the FATCA, it has become necessary for the US government to sign agreements with foreign governments allowing the trade of individuals’ financial data; this is outlined below.
From--South China Morning Post
The Group of 20 comprises finance ministers and central bank governors from 20 major economies: 19 countries plus the European Union, which is represented by the president of the European Council and by the European Central Bank.
Weisman said: "The G20 is calling on other governments to join its tax plan. Many governments will like this plan. It means more tax revenue. The G20 tax plan is significant in many respects."
For individuals who earn income through foreign financial institutions, information on that income will be provided to their home governments automatically, Weisman said.
"The financial services industry, which is a huge part of the Hong Kong economy, will be hugely affected by the G20 tax plan, as this will result in far-reaching compliance obligations," he said. "These will be costs in time and money. Hong Kong's financial services industry will have to prepare for the new reality."
In July, Hong Kong acted to allow a more liberal exchange of tax information, but not automatic exchange of tax information. In order to implement the G20 tax plan - which is targeted to be in place within two years - the city would need to again amend its laws relating to data sharing.
Weisman said it would not be commercially feasible for financial institutions to refuse to comply with the G20 tax plan, because the penalties would be too great.
Panama - International Business and Financial Center
FATCA: The G20 and the OECD – where are they?
By Eduardo Morgan Jr.
October 27th, 2013
FATCA, or the Foreign Account Tax Compliance Act, is a U.S. law which requires banks and financial institutions located abroad to report on deposits and financial assets of U.S. taxpayers, thus extending the rule of US fiscal legislation and making banks and countries worldwide U.S. tax collectors. The U.S. can impose this law because the dollar’s status as an international currency of exchange which requires that banks and financial entities have deposits and exchange transactions with the banks located in the U.S. By not submitting to FATCA, transactions conducted in the U.S. are subject to a withholding tax of 30%; this compels them either to comply or withdraw from international business.
The Intergovernmental Agreement (IGA) was created purposely to soften the fierce opposition of the global banking industry to the enormous costs of its implementation and to avoid violating various countries internal laws regarding privacy of information., The Federation of European Banks calculates that it will cost $7.5 billion solely for its 30 largest banks This agreement between nations allows banks to provide the information to their respective governments, who would in turn make it available to the U.S. government. IGA offers the incentive of reciprocity under which the U.S. will in return provide information about the accounts of those countries citizens’ in their banks. However, that promise of information reciprocity has strong opposition from the U.S. banking industry, because of the high cost of implementation and maintenance, and the fear that many foreign deposits would be lost. The United States world’s largest fiscal paradise, and their banks hold approximately two trillion dollars in foreign monies for which taxes are neither paid, nor reported. As an interesting parallel, the Spanish name for the parasitic vine that imprisons and sucks the sap and life from the host tree, is spelled “Higa”, pronounced IGA. Of course, the IGA does not include removing the famous Qualified Intermediary Agreement between the foreign financial intermediary and the IRS that guarantees full secrecy of the identity of their customers who invest in the U.S. economy (foreign companies and individuals, meanwhile, had ownership stakes in U.S. companies valued at $2.9 trillion. Foreigners had $4 trillion worth of assets in U.S. bank and brokerage accounts. Altogether, foreign-owned assets in the United States totaled $25.16 trillion).
FATCA directly affects six million U.S. residents in foreign countries who have great difficulties utilizing local banking services because of the sheer number of controls imposed. These controls–even before FATCA came into existence–are responses to banks’ fears that U.S. clients can be accused of not paying taxes in the U.S., thus possibly implicating the bank as an accomplice. Of those six million expatriate U.S. citizens, some work in U.S. businesses, but the vast majority are immigrants. The impact of FATCA’s announcement has already provoked massive renunciations of US citizenship, to the point that some senators are introducing bills to halt them; some are even proposing the extreme measure–never before witnessed in that country–of the establishment of a “departure tax.” Threats are being made that such groups or individuals will never again be able to travel to the U.S. It is unthinkable that should the U.S. convert such a policy into law, it would in effect be in violation of article 13 of the Universal Declaration of Human Rights concerning the right to emigrate.
What are your thoughts on FATCA? Do you believe this could cause the failure of the American Dollar?